Retail Presentation Looking Back at 2015 and Moving Forward in 2016 Presented By: Karen Rich Greater Portland Net Absorption Rate Comparison of 2015 vs. 2014 2015 SF vs. 2014 SF Beginning of Year Inventory 6,460,738 6,460,738 Beginning of Year Vacant 237,658 277,283 Beginning of Year Occupied 6,223,080 6,183,455 End of Year Inventory 6,460,738 6,460,738 End of Year Vacant 232,589 237,658 End of Year Occupied 6,228,149 6,223,080 Net Absorption 5,069 39,625 Source: Malone Commercial Brokers 1 Greater Portland Vacancy Rate – By Type of Space Greater Portland numbers include Portland, South Portland, Scarborough, Falmouth, Westbrook and Cape Elizabeth Type of Retail Total Area Vacancy % Power Center 3,397,616 98,925 2.91 Community 1,547,655 104,122 6.73 Strip Center 426,401 18,362 4.31 Single Tenant  (over 10,000 SF) 1,089,226 11,180 1.03 Totals 6,460,898 232,589 3.60 Source: Malone Commercial Brokers Greater Portland Vacancy Rate – By Town Greater Portland numbers include Portland, South Portland, Scarborough, Falmouth, Westbrook and Cape Elizabeth Town Total Area Vacancy % Portland 1,305,779 68.071 5.2% South Portland 3,004,466 72,666 2.4% Scarborough 1,262,326 13,500 1.1% Falmouth 544,682 74,633 13.7% Westbrook 308,910 3,719 1.2% Cape Elizabeth 34,735 0 0.0% Source: Malone Commercial Brokers 2 Vacancy Rate – Local vs. National 15.00% 13.1% 11.9% 10.5% 10.80% 11.00% 8.34% 7.3% 5.8% 6.93% 6.0% 5.61% 6.17% 5.00% 3.00% 9.7% 10.9% 9.7% 9.00% 7.00% 12.6% 12.6% 13.00% 5.92% 4.29% 2.94% 2.62% 3.68% 3.60% 1.00% -1.00% Greater Portland National Major Store Closures 3 Large Vacancies 2014-2015 Year End 2015 Year End 2014 Falmouth Shopping Center Vacancies partly due to Shaw’s relocation in Center and Rite Aid moving to pad site 66,630 62,970 Cabela’s 21,640SF (New construction 2008) 14,500 15,000 Clark’s Pond 0 25,435 Pine Tree Shopping Center – some vacancy due to Marden’s moving and not being completely re-leased 34,662 30,262 Total 115,792 133,667 Average Lease Rates 2015 vs. 2014 Asking Lease Rate Table Comparison 2015 Range 2015 2014 Average Average % Change Prime Market $12-$30 $11.78 $11.78 -0.02% Secondary Market $8-$31 $16.07 $16.07 0.02% Overall Averages $15.43-$19.80 $14.42 $14.42 -1.37% 4 New Construction Major Relocations AR HomeGoodsw 1' Marshalls Scarborough Gallery . Jami-v u" DISCOUNT FURNITURE New Franchises to Maine UNITED KINGDOM WAX CENTERQ carham?t DOLLAR 1 GENERAIZ 4 ANTHROPOLOGIE Relocations Expansions Ia?ebryant Mainer Tubs relax wit/2 L15 30mm [Tl/177's mvem MEL (Varde 696ml?!de angela BOA KG.) LQGV adams Mainers Love Their Restaurants RESTAURANT BAR Mainers Love Their Restaurants Old Port and Downtown Portland • • • • • • Positive news on the Old Port and Downtown Portland continues in 2015 Anthropologie’s presence on Middle Street has helped seen an increase in demand for that area Restaurants, Restaurants, Restaurants Average leases in the $25-$35 PSF range for spaces in the typical Old Port size of 1200-1800 SF. Almost zero vacancy rates on most of Commercial, Fore and Exchange Streets East End and West End areas are booming as well 7 Southern Maine Retail (Outside of Greater Portland Market) • • • • • • • • New and existing retailers expanding Coastal Maine Popcorn, British Goods, Stirling & Mull, Dube Music Purchase of 186 Lower Main St. by Midcoast Federal Credit Union 2016 expansion planned for Freeport Village Station Auto Zone on Route 302 Deck House Restaurant at Seacoast Franco’s Bistro Low vacancy rates Southern Maine Retail Continued • Route 111 Corridor seeing extensive  interest – local and national • New projects planned for 2016 • Downtown spaces filling with new  restaurants and sports bars • Mill buildings – retail will follow  residential growth • • • • Main Street retail is more active in 2015 Ground Round at Cinemagic 30,000-40,000 Retail/Office planned at Mill building Increased activity 8 Significant Retail Sale Transactions in 2015 • 740 Broadway, South Portland – Strip Center $4,000,000 • Shops at Long Bank, Kennebunk – Hannaford anchored $6,900,000 • Sebago Plaza, Windham $1,050,000 • Cook’s Lobster House, Boothbay Harbor $1,250,000 • Topsham Crossing, Topsham $1,870,000 • Ryan’s Corner House, Wells $1,050,000 Greater Portland 2016 Developments Marginal Way Projects Portland, ME Midtown Development Mixed Use 90,000± SF Retail Somerset Street, Portland, ME 9 New Developments Underway Coming Soon… Dirigo Plaza 550,000± SF Route 25 Portland/Westbrook, ME E-Commerce 10 Top Retail Trends in 2015 • Boomers & Millenials Heavily Influence Retail • Social Networks Serve as Shopping Platforms • Corporate Social Responsibility • Retailers Experimenting with Technology • More Accessible & Powerful Data • Retailers Investing in Better Ways to Protect Customers • More Commerce Sites Offline • Retailers Localize • Mobile Growth – All Directions • Stores with Omnichannel Strategies will Continue to Thrive Retail Trends for 2016 11 Presented By: Karen Rich A (. 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